KBR Awarded PMC Contract For Dalma And H&G Islands Projects For ADNOC
KBR, Inc. (NYSE: KBR) announced today it has been awarded a Project Management Consultancy (PMC) contract by Occidental of Abu Dhabi Ltd. on behalf of Abu Dhabi National Oil Company (ADNOC) for management of the Front End Engineering and Design Services (FEED) phase of the Dalma Gas Field Development and the Detailed Design and Surveys phase of the Hail & Ghasha Islands project at Abu Dhabi , United Arab Emirates.
Under the terms of the contract, KBR will provide project management consultancy services. This work is expected to be performed over 24 months, with an option to extend another 12 months.
ADNOC is undertaking a project for the development of the Dalma Gas Field in line with its objective to deliver a more sustainable and economic gas supply by implementing a fully integrated gas master plan that increases productivity, performance and delivery.
The Hail & Ghasha Project, one of the largest sour gas fields projects that ADNOC is developing, is forecast to produce about 1 billion cubic feet of sour gas per day.
The infrastructure requirements for the Hail & Ghasha Project include a minimum of eleven offshore artificial islands to be designed and constructed.
"KBR is pleased with the opportunity to continue our sustained relationship with ADNOC by providing our expertise, best practices and knowledge in project management to oversee ADNOC's field production activities in Abu Dhabi ," said Jay Ibrahim, KBR President for EMEA.
"This project demonstrates KBR's ability to offer cost effective solutions to our customers in the EMEA region by combining our global expertise and local presence," Ibrahim continued.
Revenue associated with this project was undisclosed and will be booked into backlog of unfilled orders for KBR's E&C Business Segment in the second half of 2017.
Saipem wins pipeline contract for Kuwait’s Al Zour refinery
Saipem has been awarded a new contract in the onshore E&C sector worth approximately 850 million USD. Activities involve engineering, procurement, construction and commissioning for the “Feed Pipelines for New Refinery Project (NRP)” in relation to the development of the new Al Zour refinery located in the south of Kuwait.
The contract has been awarded by the Kuwait Oil Company (KOC), a subsidiary of the Gulf country’s national oil company, the Kuwait Petroleum Corporation (KPC).
The scope of work comprises the construction of a system of pipelines of various diameter, approximately 450 km in length, for the transportation of crude oil and gas from various KOC South Tank Farm manifolds to the new Al Zour refinery. The project also includes the realisation of a network for the transportation of the refined products to the storage areas present in the refinery of Mina Al Ahmadi. These products will also be used to feed the Northern Power Station owned by the Ministerial body for water and electricity.
Stefano Cao, Saipem CEO, commented: “We welcome with particular satisfaction this new contract from such an important client as KOC, both because it marks a new milestone for the Company in the onshore E&C sector and, above all, because it reinforces and consolidates Saipem’s presence in Kuwait, a country where we have been operating for over 30 years and in which we have built solid and lasting relations that reflect our sustainable business model”.
CB&I signs EPC contract in Saudi Arabia
Technology and infrastructure provider CB&I said on Monday it had been awarded a contract by Técnicas Reunidas for the provision of storage tanks at the Ras Tanura refinery in Saudi Arabia.
The contract, whose value was not specified, includes the EPC and construction of nine flat-bottom tanks, as well as upgrades to tanks previously supplied by CB&I. All fabrication and project management will take place at CB&I’s local facilities in Al Khobar, the company said in a statement.
CB&I’s localisation of its services in Saudi Arabia is in support of Saudi Aramco’s in-Kingdom Total Value Add Program (IKTVA), launched by Saudi Aramco on December 1, 2015. The IKTVA programme aims to enhance and diversify Saudi Arabia’s domestic energy industry and move the country away from relying on foreign services.
Luke V. Scorsone, executive vice-president of CB&I’s Fabrication Services operating group, emphasised the close relationship between CB&I and the country’s state-owned oil company in Monday’s press release.
“This award reinforces our global relationship with Técnicas Reunidas and builds on our nearly 80-year history of supporting Saudi Aramco,” he said.
Aramco receives bids for gas plant expansion project
Saudi Aramco has received bids from international engineering firms to expand the Hawiyah gas plant, Reuters has reported quoting industry sources, as the state oil giant continues spending to expand its core business.
The companies that submitted their proposals on Sunday are: South Korea’s Samsung Engineering, Spain's Tecnicas Reunidas, Taiwan's CTCI, Italy's Saipem, Britain's Petrofac, and India's Larsen & Toubro (L&T).
South Korea's Hyundai Engineering and Hyundai Development Co Engineering & Construction (HDEC) bid together as a consortium.
L&T and Samsung Engineering confirmed to Reuters they bid for the project.
Aramco plans to expand the processing capacity at Hawiyah by 1.3bn standard cubic feet per day (scfd). The Hawiyah gas plant currently processes 2.5bn scfd of gas. Hawiyah is part of Ghawar, the world's largest onshore oilfield.
Raising gas production is key to Saudi Arabia's plan to diversify its energy mix by cutting the use of crude oil and liquids for power generation while allocating more gas to other industries it aims to develop.
Despite falling oil prices, Saudi Aramco is pushing ahead with oil and gas projects that it has highlighted as a priority for the long term to keep the world well supplied with oil while meeting gas demand domestically.
It plans to nearly double gas production to 23bn standard cubic feet a day in the next decade.
Savannah Resources starts construction for Mutamba pilot project
Savannah Resources PLC (LON:SAV) told investors that construction work has started for the pilot plant at the Mutamba project in Mozambique.
The plant is part of the bulk metallurgical test project at Mutamba. It will be a 20-tonne per hour facility, capable of producing bulk samples of concentrates from mineral sands.
It expects the construction and commissioning phases will be completed by the end of this year.
David Archer, Savannah chief executive, said: “We are pleased that the pilot plant construction work is now well underway at Mutamba and that good progress is being made.
“Once commissioned and operational, the plant will provide concentrate bulk samples for analysis and the preparation of final products for test marketing.
“The completion of the plant will be a key milestone for the Mutamba Consortium as we move the Project towards a development decision.”